Apple, Inc AAPL closed Friday's trading session 1.41% higher, leading to the SPDR S&P 500 closing up 1.3% ahead of news that President Joe Biden and House Speaker Kevin McCarthy had reached a tentative agreement to raise the debt ceiling.
The decision caused Apple to close on the median line of a rising channel pattern, which the stock has been trading in since March 22.
On Friday, Apple formed a bullish Marubozu candlestick, which suggests the stock may trade higher on Monday.
The second most likely scenario is that Apple creates an inside bar pattern, which would lean bullish for continued expansion.
If Apple trades higher on Monday, the stock may find resistance at the upper trend line of the channel. If bearish traders see the stock printing a bearish reversal candlestick, like a doji or shooting star candlestick, at the top of the channel, they can continue to bearish traders.
Should Apple reject the top of the pattern, the stock might drag the market lower, which could increase volatility. SPIKES Volatility products from MIAX can be used by traders who wish to trade volatility in the stock market. The products, sold on the SPIKES Volatility Index SPIKE, track expected volatility in the SPDR S&P 500 over the next 30 days.
If Apple breaks through the top of the channel, bullish momentum may enter to drive the stock up to the highest level of 182.94, where the stock could find resistance at least temporarily.
The company, which is based in Cupertino, California, has a range of $177.71 and $182.13, and a support level below $174.33 and $171.03.
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